Leidos awarded $27M contract for call center support services by the Defense Health Agency
Contract Overview
Contract Amount: $27,077,574 ($27.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-09-15
End Date: 2026-01-14
Contract Duration: 1,582 days
Daily Burn Rate: $17.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CALL CENTER SUPPORT SERVICES
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $27.1 million to LEIDOS, INC. for work described as: CALL CENTER SUPPORT SERVICES Key points: 1. The contract value of $27.1 million over its period of performance represents a significant investment in essential communication infrastructure. 2. Competition dynamics for this contract are favorable, with a full and open competition process indicating a robust market response. 3. The firm-fixed-price contract type suggests that cost risks are largely borne by the contractor, potentially leading to more predictable spending. 4. Performance is benchmarked against industry standards for call center operations, with key performance indicators likely tied to response times and resolution rates. 5. This contract positions Leidos, Inc. as a key provider of support services within the Defense Health Agency's operational framework. 6. The duration of the contract, spanning over 1500 days, suggests a need for sustained and reliable service delivery.
Value Assessment
Rating: good
The total award of $27.1 million for call center support services appears reasonable given the contract's duration and scope. Benchmarking against similar government contracts for contact center operations indicates that the per-diem or per-call costs are likely within an acceptable range. The firm-fixed-price structure helps manage cost uncertainty for the government. Further analysis would require detailed service level agreements and performance metrics to fully assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 6 bidders suggests a healthy level of competition for this service requirement. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government, as contractors vie to win the award.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure competitive pricing for essential call center services.
Public Impact
Beneficiaries include military personnel, their families, and potentially civilian employees seeking information and support through the Defense Health Agency. Services delivered encompass telemarketing, customer service, and other contact center functions essential for health-related inquiries and support. The geographic impact is likely nationwide, supporting users across various military installations and remote locations. Workforce implications include the creation or maintenance of jobs within Leidos, Inc., potentially in areas related to customer service and technical support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if service requirements are not clearly defined and managed.
- Dependence on contractor performance for critical communication channels.
- Ensuring data privacy and security for sensitive health-related information handled by the call center.
Positive Signals
- Firm-fixed-price contract type mitigates cost overruns for the government.
- Full and open competition suggests a competitive market and potentially better pricing.
- Long contract duration allows for stable service provision and potential for economies of scale.
Sector Analysis
The call center and contact center services sector is a vital component of the broader business services industry, supporting a wide range of government and commercial operations. This contract falls under the IT and Business Services category, specifically focusing on telecommunications and customer support. Comparable spending in this sector by government agencies is substantial, reflecting the increasing reliance on efficient communication channels for service delivery and information dissemination.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The focus on a large prime contractor like Leidos, Inc. may limit direct opportunities for small businesses unless they are part of the prime's subcontracting team. Further review of subcontracting reports would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Defense Health Agency's contracting officers and program managers. Performance will be monitored against the terms of the firm-fixed-price definitive contract, including service level agreements and key performance indicators. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Health Agency IT Support Services
- Department of Defense Contact Center Operations
- Federal Call Center Contracts
- Healthcare Support Services
Risk Flags
- Potential for performance issues impacting service delivery.
- Risk of data breaches or privacy violations.
- Contractor dependency for critical communication functions.
Tags
defense, health-it, call-center, support-services, leidos, defense-health-agency, definitive-contract, firm-fixed-price, full-and-open-competition, maryland, it-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.1 million to LEIDOS, INC.. CALL CENTER SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $27.1 million.
What is the period of performance?
Start: 2021-09-15. End: 2026-01-14.
What is Leidos, Inc.'s track record with similar call center support contracts for the Department of Defense or other federal agencies?
Leidos, Inc. has a substantial history of providing IT and support services to the federal government, including the Department of Defense. While specific details on their call center support contracts require a deeper dive into historical contract data, Leidos is a large, established government contractor known for its broad range of services. They have previously held contracts for IT help desks, customer support, and communication services across various agencies. Their experience typically involves managing large-scale operations, adhering to strict security protocols, and meeting performance metrics. A review of their past performance evaluations and contract awards would provide a more granular understanding of their capabilities and reliability in delivering call center support.
How does the awarded amount of $27.1 million compare to the estimated value or budget for similar call center support services within the DHA?
Without access to the government's initial cost estimates or the specific details of the service level agreements, a direct comparison of the awarded amount to an internal budget is challenging. However, the $27.1 million award over approximately 4.5 years (from September 2021 to January 2026) suggests an average annual value of roughly $6 million. This figure needs to be contextualized by the volume of calls, complexity of inquiries, and the specific services required. Benchmarking against publicly available data for similar large-scale federal call center contracts can provide a relative perspective. If comparable contracts for similar scope and duration typically fall within a similar range, the award can be considered reasonable. Conversely, if it significantly deviates, further investigation into the underlying cost drivers would be warranted.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks for this contract include potential performance shortfalls in meeting service level agreements (SLAs), such as response times or call resolution rates, which could impact the quality of support provided to DHA personnel. Another risk is data security and privacy, given the sensitive nature of health information that might be discussed. Contractor personnel turnover could also lead to a loss of institutional knowledge and impact service continuity. Mitigation strategies likely involve robust performance monitoring by the DHA, clearly defined SLAs with penalties for non-compliance, stringent security protocols and training for contractor staff, and potentially requirements for contractor retention plans. The firm-fixed-price nature of the contract also shifts some financial risk to the contractor.
What is the expected effectiveness of these call center services in supporting the Defense Health Agency's mission?
The call center support services are expected to enhance the effectiveness of the Defense Health Agency's mission by providing a centralized, efficient, and accessible point of contact for beneficiaries and staff. By handling inquiries related to healthcare services, appointments, benefits, and administrative processes, these services can reduce the burden on direct medical personnel, allowing them to focus on patient care. Improved communication channels can lead to higher beneficiary satisfaction, better adherence to health protocols, and more streamlined administrative operations. The effectiveness will be directly tied to the contractor's ability to meet performance metrics related to call volume, resolution rates, and customer satisfaction, ensuring that users receive timely and accurate information and support.
How has spending on call center support services by the Defense Health Agency evolved over the past five years?
Analyzing historical spending trends for call center support services by the Defense Health Agency over the past five years would require access to detailed federal procurement data. Generally, federal agencies have increasingly relied on outsourced call center services to manage large volumes of inquiries and provide specialized support. Spending in this area can fluctuate based on changes in program requirements, technological advancements, and shifts in contracting strategies (e.g., moving towards consolidated contracts or specific service providers). Without specific historical data for DHA's call center contracts, it's difficult to provide a precise evolution. However, the trend across the government has been towards leveraging technology and professional services to improve citizen and constituent engagement, suggesting a sustained or potentially increasing investment in such capabilities.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telemarketing Bureaus and Other Contact Centers
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W81XWH21R0033
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,585,700
Exercised Options: $27,077,574
Current Obligation: $27,077,574
Actual Outlays: $1,884,363
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $6,651,154
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-09-15
Current End Date: 2026-01-14
Potential End Date: 2026-06-14 00:00:00
Last Modified: 2026-01-14
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